But the news division of BuzzFeed has not been as successful. The changes announced Tuesday are part of what Peretti said in a staff memo are “plans to position BuzzFeed News to thrive in the current media ecosystem, accelerate its path to profitability, and become a stronger financial contributor to the overall BuzzFeed, Inc. business.”
BuzzFeed Video and Complex Editorial, which BuzzFeed acquired when it went public, are also downsizing “to better align with audience and industry trends,” according to Matt Mittenthal, VP of Communications at BuzzFeed. In total, about 1.7% of the company’s workforce will be impacted by Tuesday’s announcements, Mittenthal told CNN Business.
Employees on BuzzFeed News’ Investigations, Politics, Inequality and Science teams will be able to participate in the buyouts, so long as they have been with the company for a year or more, according to the memo. Employees have a month to act on the offer.
In order to achieve future financial goals, “BuzzFeed News will need to get smaller,” Peretti said in his memo to staff, “and to prioritize the areas of coverage our audience connects with most.” In addition to leadership changes and cuts, there will be a new dedicated business development group in the news arm and a content priority placed on “investments around coverage of the biggest news of the day, culture and entertainment, celebrity, and life on the Internet,” Peretti said on Tuesday’s earnings call.